David Wessel

Washington, D.C.

Contributor at The Wall Street Journal

Director, Hutchins Center at Brookings Institution

Director, Hutchins Center on Fiscal & Monetary Policy, Brookings. My latest book "Only the Rich Can Play," the story of Opportunity Zones.

Articles

Closing the racial gap in economic and social power

1 week ago | brookings.edu | Andre Perry |David Wessel |Fred Dews

... just as we can start these bad policies at the local levels, we can create inclusive policies at the local level. So that’s part of what the book does. It says here are people actually doing something to change the outcomes of Black people and communities. Andre Perry Historically, Black Americans’ quest for power has been seen as an attempt to gain equal protection under the law, but power in America requires more than basic democratic freedoms.
Why is the Federal Reserve independent, and what does that mean in practice?

1 month ago | brookings.edu | David Wessel

What does “independence” mean? The Federal Reserve was created by an act of Congress in 1913 and, since 1977, has been charged with promoting maximum employment and stable prices. In practice, independence means that the Fed can set interest rates without interference from Congress or the White House even if politicians aren’t unhappy with Fed policy—and say so publicly. Congress could, of course, change the law, but no bill to alter the Fed’s mandate or governance has gone very far.
The Paradox of Trump’s Economic Weapon

1 month ago | foreignaffairs.com | Nicholas Mulder |Michael Albertus |Matthew J. Slaughter |David Wessel

Since returning to the White House, U.S. President Donald Trump has unleashed a whirlwind of policy shifts, territorial claims, and economic threats. In his first few weeks in office, Trump has expressed a desire to bring Canada, Greenland, the Panama Canal, and the Gaza Strip under direct American control. He has also expanded his trade offensive against China to include Canada and Mexico, the United States’ two largest trading partners.
The Broken Economic Order

1 month ago | foreignaffairs.com | Mariana Mazzucato |Jason Furman |Matthew J. Slaughter |David Wessel

In many ways, Donald Trump’s election to a second term as U.S. president is a story of economic dissatisfaction. For the first time in decades, the Democratic candidate received more support from the richest Americans than from the poorest. In 2020, most voters from households earning less than $50,000 a year opted for the Democrat, Joe Biden; in 2024, they favored the Republican, Trump. Those making more than $100,000 a year, meanwhile, were more likely to vote for Kamala Harris than for Trump.
Productivity Is Everything

1 month ago | foreignaffairs.com | Matthew J. Slaughter |David Wessel |Jason Furman |Amy Pope

For the United States, these are trying times. Americans are overcome with an unshakable sense of economic malaise. The top-line indicators are good: unemployment is low, inflation is declining, and the country remains the richest in the world. Yet in poll after poll, most Americans say they are unhappy with the state of the economy today and its prospects for tomorrow. Only a quarter consider the economy good or excellent.
What is reconciliation in Congress?

Jan 13, 2025 | brookings.edu | David Wessel

With 53 Republicans and 47 Democrats (or Democratic-caucusing independents) in the Senate in the 119th Congress—and Republicans therefore shy of the 60 votes needed to avoid a filibuster—there is attention to a legislative process for getting tax and spending bills through the Senate known as reconciliation. Here’s what it is and how it works. When and why does Congress use reconciliation?
What does the Federal Emergency Management Agency (FEMA) do, and how is it funded?

Dec 18, 2024 | brookings.edu | Sarah Ahmad |David Wessel

As the nation’s primary disaster relief agency, the Federal Emergency Management Agency (FEMA) plays an important role in funding recovery efforts at the state and local level and supporting survivors after natural disasters. For instance, in 2024, FEMA approved over $4.3 billion in aid to survivors of Hurricane Helene and deployed around 5,000 federal responders. What is FEMA? What does it do?
Where do the estimates of a “housing shortage” come from?

Oct 20, 2024 | brookings.edu | David Wessel

In the early 2000s, the U.S. had an oversupply of houses, which led to the collapse of housing prices and triggered the Global Financial Crisis of 2007-9. But since then, the notion that the U.S. is currently suffering from a “housing shortage” has been widely accepted by politicians, the public, and the press. Housing costs are high on the worry list for many voters; hence candidates’ eagerness to offer solutions.
What would it cost to replace all the nation's lead water pipes?

Oct 8, 2024 | brookings.edu | Sophia Campbell |David Wessel

Removing lead from America’s drinking water is gathering political support. The 2021 bipartisan infrastructure bill included $15 billion over five years to replace lead pipes and service lines across the United States. Although this figure was whittled down from President Biden’s original proposal of $45 billion, the effort is the federal government’s most ambitious on this front to date—and research suggests that the public health and economic benefits of doing so are extensive.
Don Kohn’s reflections on Jackson Hole 2024

Sep 2, 2024 | brookings.edu | David Wessel

Don Kohn holds the Robert V. Roosa Chair in International Economics and is a senior fellow in the Hutchins Center on Fiscal & Monetary Policy in the Economic Studies program at the Brookings Institution. Kohn is a 40-year veteran of the Federal Reserve system, serving first as a staff economist, and from 2002 to 2010 he was a member and then vice chair of the Board of Governors. Since the 1980s, he has been a frequent participant in the Kansas City Fed’s high-profile Jackson Hole conference.